📈 SL Money Market Liquidity Hits 5-Year High of Rs. 266 Bn

• Overall Liquidity: Net liquidity surplus surged to Rs. 266.13 Bn on Tuesday, the highest level since January 2021 and a post-2022 crisis record. A massive Rs. 266.33 Bn was deposited at the CBSL Standing Deposit Facility Rate (SDFR) of 7.25%. • Treasury Bill Auction: Yields dropped for the 3rd consecutive week across all maturities. - 91-day: 7.80% (down 4 bps) - 182-day: 8.17% (down 9 bps) - 364-day: 8.33% (down 3 bps) The auction raised Rs. 89.82 Bn (74.85% of the Rs. 120 Bn offered) despite being undersubscribed. • Secondary Bond Market: High liquidity pushed yields lower on the "belly end" of the curve (2029-2033 tenors) as investors sought higher carry returns. Active trading seen in banking & finance related instruments, with the 2028 maturity trading between 9.02% - 9.16% and 2033 maturity at 10.60% - 10.65%. • Forex Market: The LKR showed slight appreciation against the Greenback, with the USD/LKR spot contract closing at Rs. 309.45/309.55 compared to the previous close of Rs. 309.55/309.65. _Note: Based on data from Wealth Trust Securities and CBSL._